Stock Market Outlook: Short Selling Agencies' Malicious Short Selling Targets Are Not Random.

In May 4, 2017, the performance of Feng Sheng holdings on the first day of resumption was a tone of controversy, and Its Clarification Announcement seemed to temporarily beat the challenge of the short selling agency.

From the recent activities of the international short selling agency, the Chinese stock market in the Hong Kong stock market has been repeatedly spiteful, such as Hui Shan dairy, Depp technology, Hin film power generation and so on.

It is precisely because many investors are not familiar with the short selling mechanism that they often roll over in the Hong Kong stock market.

The short selling mechanism has two advantages in the stock market. On the one hand, it can help investors achieve hedging in the presence of risks. On the other hand, it can enable investors to make profits in the process of market decline.

It can be said that the capital market with mature short selling mechanism is the sound capital market.

It should be noted that in a market that can only be profitable through unilateral gains, the short sellers will be short in the stock market and stocks in order to reduce the cost of intervention, so that they can acquire more equity chips with the same funds in the later stage.

There are many ways to make short selling. A typical example is the short selling agency represented by muddy water to release the bearish report, in order to reduce investor confidence and reduce the expectations of listed companies. The two is to suppress stock prices through the two market sell-off, and directly reduce the stock price without warning.

As for the difference between short selling and malicious short selling, it is mainly divided into passive and active.

Short selling is passive behavior, that is, investors believe that if the underlying investment is down, they can make profits through short selling under the premise of respecting the market. Malicious short selling is the initiative behavior, that is, investors can see a stock leak and then suppress their stock price, ignoring the normal fluctuation of the market and making profits through human means.

For example, the Clarification Announcement of Feng Sheng holdings after being shorted is to fight against the bad practices of the short selling agencies. Both sides' reports are trying to win over the investors, while telling investors that the company is really not working, and on the other hand, they release the confidence that the company is now very good and the future will be better.

From the first trading day's performance, Feng Sheng holding temporarily occupied the advantage. But muddy water released the bearish report on the Hui Shan dairy industry, and the Hui Shan dairy industry responded to it one by one. The major shareholder also carried on the overweight, and once there was a situation of controllable situation. But the company's 85% day fall in March was shocking.

Therefore, we can not take it lightly.

However, judging from the current situation, the clarification report of Feng Sheng holdings is well worth learning from A share listed companies. This is also the necessary ability of Listed Companies in market value management, information disclosure and openness and pparency.

The better a listed company is in these areas, the more pparent the information is, the lower the probability of being short pressed by the agency, and even if it is hit, it will fall down because of its good performance.

But in the international capital market, there are too many uncertainties.

We can not predict whether the future of Feng Sheng holdings will continue to be short released by the agency to publish new bearish reports, and it is even impossible to predict whether there will be institutions involved in malicious short action.

Therefore, in the next three months, Feng Sheng holding company should do its job well.

Yes

For example, the reports that impact the company's share price can be called malicious short selling, but not all reports that impact the company's share price are malicious short selling. For example, some media have uncovered hidden scenes of a listed company through the undercover investigation. Such news or reports are not malicious reports. Instead, people who write such news or reports will be called "people with a sense of justice" by the public.

Flies do not bite the seamless eggs.

Malicious objects are not random.

We can find that whenever there are short selling reports issued by a short selling organization to Hong Kong listed companies, Hongkong regulators often first investigate the empty institutions.

If the problem is really found, the empty agency's empty report is naturally not a malice, but on the contrary, it has played a positive role in promoting the investigation of the regulatory authorities.

Of course, if the short selling report issued by the short selling organization is not true, there is no way for the regulatory authorities in Hongkong to do so.

Because most of the short selling agencies are overseas, and the information available by these organizations is not involved in the company's stock trading, they can not be regulated.

In the overseas capital market, fund companies can buy research reports to research companies. When the two sides collude together, the report will not be disclosed. After the two sides confirm that the company is going to be malicious, the fund company will first empty the list of the listed companies. The company will publish the short report on its own website and related media to enforce the stock price pressure. At the same time, some of the first capital will cause panic through the empty list. After a multi pronged approach, the fund company will take advantage of the low price liquidation.

On the whole, the short selling industry chain does not exist in the Hong Kong stock market, but exists in the international capital market. The short selling of Hong Kong stocks is not necessarily local, but it is likely to be overseas investors.

Or muddy water as an example, this organization is only a part of short selling industry chain, that is, to suppress the market.

Price of stock.

Occasionally, some of the listed companies' stock prices will plummet, so occasionally, some companies' shares are not damaged by various actions of short selling organizations, but they will not lose too much.

While the short selling organization is making money, small investors are huge losses.

Although investors will be verbally speaking, "the stock market is risky and the investment needs to be cautious", we all know that when we invest rationally, however, when our stocks are seriously damaged and the funds are seriously shrunk, few people can really be rational and put their minds right.

Therefore, investors should take a look at the investment experience of those who have lost their fortune and study the investment rules of Hong Kong stocks. Otherwise, the next batch of people who will eat their money will probably turn themselves.

The whole world is the same. The more well functioning, pparent and standardized listed companies, the harder it is to sell short selling reports by the short selling organizations, and those enterprises with problems often have various loopholes. Unfortunately, they can only be unlucky when they are eyed by the short selling agencies.

Therefore, not only investment A shares and Hong Kong stocks should pay attention to blue chips, but also small investors should invest in those blue chip stocks and large cap stocks when investing in other equity markets in the world.

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